What is the benefit of contributing to a spousal RRSP?

Contributing to a spousal RRSP is advantageous if you and your spouse/common-law partner have different income levels. This is because the spousal RRSP contributions allow spouses to split income more equally at retirement. The spouse who expects to have higher income at the time retirement should be the one to contribute to the spousal RRSP. The RRSP will be registered in the name of the spouse and he/she will be the owner of the investments within the RRSP. However, for any contributions made, it is the contributor who will be receiving the tax deduction, and whose RRSP deduction limit will be reduced.